Crypto adoption in Latin America is coming on in leaps and bounds over the past few months, with Cielo delivering the latest advancement in the space. Cielo – Brazil’s largest payment processor – has announced that it will push a firmware update for its 1.4 million point of sale (POS) devices that will allow them to accept Bitcoin. Users looking to spend crypto through Cielo’s new QR code system will be required to use Uzzo or Criptohub in order to process the payment – not just a regular crypto wallet.
Just the First Step
For Cielo, this is just the beginning. In October, the company is planning to allow crypto payments without the need] for a POS device. Set to launch on October 14, CieloPay will allow merchants to generate QR codes from mobile and tablet devices, as well as through online stores. This would be a huge leap for businesses in Brazil, as they would have yet another option when it comes to accepting crypto payments online.
A System Similar to Flexa
Earlier this year, we saw the launch of Flexa in the US. The system allows merchants in the US to quickly accept cryptocurrency payments without needing to install new hardware. Customers download the Flexa app and top up their account with the desired cryptocurrency and create a QR code that the Flexa scanner will read and debit the correct amount from your wallet. This is a quick and easy way to pay for goods and services, but currently it’s only available in the US – driving demand for products like Cielo around the world.
Brazil is Warming up to Crypto
Brazil is quickly becoming a hub for Bitcoin and crypto adoption, with it entering politics and becoming accepted on public transport. During the recent Brazilian elections, João Amoêdo – Brazilian New Party candidate – proposed allowing Bitcoin to become a recognized currency in the country in a bid to stamp out corruption, like we saw under Dilma Rousseff. Unfortunately, Amoêdo lost the elections, giving way to Jair Bolsonaro. Then, Fortazleza integrated crypto payments to its public transport system, allowing residents to pay in crypto for their bus rides. This is a huge amount of adoption in the country, and by adding Cielo into the mix we could quickly see Brazil become the Latin American capital of Bitcoin adoption.
Cielo will be a huge game-changer for Brazilian merchants, but needing to have a special app could be a slight damper. However, when CieloPay goes live, we could see the system become overwhelmingly popular in the country.